Question 1190714
the payment required at the beginning of each month for 7 years will be $4433.32.


i used the financial calculator at <a href = "https://arachnoid.com/finance/index.html" target = "_blank">https://arachnoid.com/finance/index.html</a>


here are the results.


<img src = "http://theo.x10hosting.com/2022/021305.jpg" >


the inputs are:


present value  0
future value = 450,000
number of time periods = 7 * 12 = 84
interest rate % per time period = 5.2 / 12 = .433333....%
payments are at the beginning of each time period.


you then click on payment amount and you get -4,433.42.
this is rounded to the nearest penny.
it is negative because it's money that you are paying out at the beginning of each month.
the future value is positive because it is money that you will be receiving at the end of the investment period.


they shelled out a total of 84 * 4433.42 = 372,407.28


the present value of the payments is equal to 312,947.04.


the interest on the loan is 372,407.28 minus 312,947.04 = 59,460.24.


the online calculator rounds answers to the nearest penny.
with multiple things being done, this could generate some error.
i used my texas instruments business analyst calculator to do the same calculations.
this is what i got.
payment at the beginning of each month is equal to 4433.422978.
present value of the loan is equal to 312,947.0411.
84 payments of 4433.422978 is equal to 372,407.5302.
interest on the loan is 372,407.5302 minus 312,947.0411 = 59,460.4891.
4433.42978 rounds to 4433.42.
312,947.0411 rounds to 312,947.04
372,407.5302 rounds to 372,407.53.
59,460.4891 rounds to 59,460.49.


the results are slightly different.
if one set doesn't get you the right anser, then try the other set.
one of them should work.


let me know how you did.
theo